What are the responsibilities of a cosigner when the borrower files bankruptcy?

Answer by  patti (29325)

When a borrower becomes unable, for whatever reason, to meet the obligation, the co-signer is responsible. In these cases, the individual usually asks to have the loan excepted from the bankruptcy and to continue to pay the debt in order to spare the co-signer.

Answer by  MarkWatrous (729)

Unless the borrower agrees to keep this debt out of his/her bankruptcy,the creditor may pursuit repayment from you. Get a promissory note and include a clause that the borrower must include the debt in his/her bankruptcy. Make the borrower sign it, get it notarized and file it with the court.